What Is Employee Attrition?

What is employee attrition?

Employee attrition occurs when someone leaves a company, for any reason and through any means, and is not replaced by another employee. Regardless of whether the individual left of their own volition, their departure is considered attrition if the position remains unfilled or is eliminated afterward. By itself, attrition isn’t necessarily a negative thing. For businesses that need to cut costs, not filling a vacancy (and having existing employees take on the extra work) can provide some leeway in the budget. 

However, problems can arise if attrition levels are too high. Remaining team members may struggle to absorb the additional responsibilities, especially if they lack the necessary training or are already managing high workloads. This can lead to employee burnout and reduced productivity, while adding to a mile-long to-do list of tasks that cannot be accomplished without adequate staffing.

How do you calculate attrition?

To calculate your company’s attrition rate over a period of time, take the number of employees who have left (without having their positions filled), then divide that number by the total average number of employees. Multiply this number by 100 to obtain your percentage of attrition.

For example, consider a company with an average of 90 employees year over year. If 11 employees left without a replacement in the last year, the attrition rate calculation would be as follows:

11/90 = 0.12 or 12 percent

Types of attrition

These are the main types of attrition:

• Voluntary attrition. This occurs when an employee quits their job voluntarily. Reasons for voluntary attrition include pursuing a new career opportunity, moving to a new city or caring for family. This is the most common type of attrition.
• Involuntary attrition. This refers to any attrition initiated by the organization rather than the employee. Termination and company restructuring are the most common types of involuntary attrition.
• Attrition due to retirement. When employees reach their mid-60s and beyond, it is common for them to retire from a job.
• Internal attrition. Internal attrition occurs when an employee leaves their job in one department to join another.
• Demographic-specific attrition. This type of attrition occurs when employees from a certain demographic group (e.g., women, people of color or people with disabilities) leave an organization at higher rates than other groups.

Employee attrition vs. employee turnover

While employee attrition and employee turnover are often used interchangeably, there are subtle differences between the two.

Employee attrition

If an individual leaves their job for any reason and the employer does not fill the vacancy, this is considered employee attrition. For example, when an organization must make layoffs or restructure departments, this is typically done with the expectation that the positions will be eliminated altogether. Another example of attrition is when someone retires and the company decides not to hire a replacement.

Attrition is not necessarily a negative thing, especially in circumstances that are beyond the employer’s control. However, high attrition rates or patterns of employees leaving may be worth exploring further for underlying causes that need to be addressed.

Employee turnover

Turnover refers to when an individual leaves their position, and the employer intends to replace them. Whether an employee has been fired due to poor performance or is leaving voluntarily to pursue a different opportunity, this falls under the category of turnover if someone else is hired to replace them.

While employee turnover is often caused by similar reasons as attrition, turnover is often viewed more negatively and can cause more pressing issues. In addition to overburdening existing employees to complete the necessary work, staff turnover can be expensive.

What are the causes of employee attrition?

Common causes of employee attrition include the following:

• Low unemployment. If your industry or geographic location has low unemployment rates, it can be more challenging to fill vacancies. If a business does not want to expand its search or reduce its hiring standards, it may face high levels of attrition.
• Workplace demographics. Companies with a larger senior workforce may have many of their employees retire at the same time. This can leave more vacancies than can easily be filled at once.
• Toxic work culture. Whether due to a difficult boss, employee infighting or unrealistic expectations, a toxic workplace can lead to employees leaving in droves. High turnover rates are often a red flag for potential job candidates, making it difficult to fill and maintain those positions.
• Lack of opportunity. According to Julie Cartwright, president of Pvolve, two of the most common reasons people seek employment elsewhere are greater career advancement opportunities and better compensation.
• Unclear or shifting roles. “Attrition usually happens when roles are unclear, communication breaks down or people feel overworked without support,” said Armando Soto, president of Break 2 Success. “Even with strong leadership, fast growth can cause employees to feel lost or undervalued.” Tim Heneveld, country director for PERGOLUX in North America, agreed, “If people can’t see where they’re going, they eventually move on.”
• Business relocation. Even if it makes sense for a business to move to a different geographic location, employees may be unable or unwilling to relocate. In this scenario, it takes time for companies to hire replacements, resulting in high attrition rates.
• Reorganizations/restructures. When companies reorganize or restructure their teams, it is done to eliminate positions altogether. In this situation, attrition is necessary and the ultimate goal of restructuring.

>> Learn More: How to Create a Strong Company Culture

Signs of attrition and turnover risk in teams

Worried about attrition and turnover? Here are some warning signs to look out for:

• Performance declines. When your top workers start to perform at less of a level than they usually do, Heneveld advised paying attention. “Increased mistakes or missed deadlines can also signal that employees have one foot out the door,” he said.
• Reduced engagement. “You may notice top performers becoming quiet, missing deadlines or disengaging from team efforts,” Soto said. “When people stop contributing ideas or show signs of emotional fatigue, those are clear indicators that turnover could be coming.” Additionally, according to Cartwright, “increases in internal conflict or passive resistance to change” can also indicate employee dissatisfaction.
• Broader industry or company issues. Cartwright pointed out that “industry or company-specific challenges [such as] economic pressures, shifts in business model and uncertainty about future growth” could also lead to organizational restructuring and, ultimately, attrition.

What types of jobs have high attrition rates?

Attrition rates vary across industries, subsectors and job titles. However, certain industries experience higher rates of attrition than others. 

As reported in the Bureau of Labor Statistics’ latest Job Openings and Labor Turnovers (JOLTS) report, these are the 10 industries with the highest number of layoffs and discharges as of March 2025:

1. Trade, transportation and utilities: 1,022,000 separations
2. Professional and business services: 970,000 separations
3. Leisure and hospitality: 898,000 separations
4. Private education and health services: 747,000 separations
5. Accommodations and food services: 728,000 separations
6. Health care and social assistance: 660,000 separations
7. Retail trade: 602,000 separations
8. Government: 345,000 separations
9. Construction: 313,000 separations
10. Manufacturing: 310,000 separations

While industry trends can be a helpful starting point, business leaders should look within their own companies to understand their attrition rates and how to rectify them.

Pros and cons of attrition

When compared to employee turnover, which typically involves filling vacancies, employee attrition has its pros and cons.

Pros of attrition

On the surface, it may seem odd that there are pros to attrition, but they do exist. Here are a few to consider:

• Reduces your labor costs. The most significant advantage of attrition is reducing labor costs, especially if your organization is struggling. These budget cuts can help your business stay afloat. Additionally, eliminating a role or choosing not to fill it after an employee voluntarily leaves reduces your headcount costs and any associated expenses with new hires.
• Alleviates the need for layoffs. Attrition can lead to a more amicable departure during difficult events and can reduce the number of people affected by layoffs.
• Inspires your team’s performance. Some of your employees may have been performing poorly under the radar. Once they leave, you may find that the rest of your team increases their performance, creativity and output to compensate for the lost position.
• Provides the opportunity to correct your company culture. You may notice that some team members operate in conflict with your company’s culture and mission. If you let them go, you’re sending a clear message to the rest of your workforce about the importance of the brand’s culture and your belief in its mission.

Cons of attrition

There are also several negatives of attrition to consider:

• Your business will have to operate with a smaller workforce. When you choose not to fill a vacant position, you’re putting additional pressure on the remaining members of your team to compensate for the loss and take on additional responsibilities.
• Team members may struggle to manage the increased workload. Junior workers who lack the necessary training and experience to take over for a more senior employee or those who juggle too many responsibilities could struggle to cover the additional work. 
• Attrition can be costly. Unexpected attrition for specialized roles or positions that rely on existing client-employee relationships can be difficult and expensive to overcome.
• Your team could experience burnout. If your team is trying to tackle too many tasks, it could lead to burnout. Those who feel burnt out could begin to underperform. If the situation is dire enough, additional employees may also leave in favor of opportunities that prioritize a more desirable work-life balance.
• Lack of tenured employees with historical knowledge. Employees who leave your organization take all the knowledge, relationships and experience they’ve gained on the job. Not only must you now try to manage with a smaller team, but you’ve also lost valuable company knowledge and insights that can take years to recover. 

How to prevent voluntary attrition

To address attrition within your organization, start by identifying pain points for high-performing employees and those at high risk of leaving, said Ian Cook, vice president of product management at Visier.

“Analyzing indicators such as team makeup, skill sets, roles, tenure and compensation ratios, combined with performance ratings, helps determine common pain points of high performers so organizations can take steps to address voluntary [attrition] among this group,” Cook told business.com. “With the right data in hand, employers can then create tailored engagement plans, implement more one-on-one engagement between employees and their managers, and realign with high performers on the specifics of their role — all steps that have a powerful impact on retention.”

>> Learn More: How Hiring a Chief Happiness Officer Can Benefit Your Business

Here are a few additional steps you can take to promote employee satisfaction and retention.

Train your managers.

Management is a separate skill set that should be cultivated in all company leaders. Investing in management training is a win-win: it gives leaders the confidence and skills they need to effectively manage their team while allowing employees to enjoy a healthy manager-employee relationship that helps them grow their skills.

Keep up with competitive salary rates.

Money can often be a deciding factor in both hiring and retaining top talent. Staying up to date on market rates allows you to offer competitive (yet fair) compensation to your employees. Cartwright shared that her company offers an annual bonus program and long-term retention incentives for key executives.

Conduct stay interviews.

While exit interviews are commonplace and can give insight into why someone has decided to leave your company, stay interviews can help keep them from leaving in the first place. A stay interview is designed to help leaders understand why employees choose to stay with the organization and identify areas that can be improved.

Revisit your benefits and perks.

The perks that initially drew in your employees may not be the same ones they are seeking now. Revisit your benefits package every few years, considering your staff’s changing needs and any new perks that may be available. For example, younger employees without families may not need paid childcare, but it may become attractive to them five years later if they choose to start a family.

Be flexible.

In the wake of most nonessential workers telecommuting during the pandemic, many teams have found that their jobs can be done just as effectively from home as from the office. Offering flexibility in remote work or start hours can help employees better manage their work-life balance, increasing the likelihood that they’ll stay. [Read related article: Ways to Create a Happy and Motivated Workplace]

Use accurate job postings.

One of the best ways to retain employees is to ensure that you attract the right candidates and share expectations from the start. When you craft job postings that accurately describe the job’s responsibilities and specifications, you’re more likely to find candidates who are happy to join and stay with your company.

Prioritize employee support and communication.

Communication with employees is key to ensuring your team feels supported and valued. “We maintain an open dialogue with team members around their career goals and development opportunities,” Cartwright said. “Our culture prioritizes transparency, cross-functional collaboration and shared wins — paired with a true open-door policy that encourages communication at every level.”

Floor van Griensven, chief people officer of Trivium Packaging, also emphasized the importance of listening to employees — and taking action accordingly. “Listening can take many forms, from surveys and pulse checks to town halls and feedback sessions,” said van Griensven. “[Then], take consistent action after listening to employees … This will make employee engagement contagious and a priority for everyone.”

Sean Peek contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.